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MANILA, Philippines - (UPDATED 4:21) Philippine share prices plummeted below the 5,000-mark on renewed concerns that Greece could exit the euro zone following failed coalition talks.
At the Philippine Stock Exchange, the composite index plunged 106.17 points or 2.09 percent to 4,977.45 on Tuesday.
Only the mining and oil counter managed to escape the bloodbath with a gain of 1.68 percent.
A total of 3.24 billion shares worth P7.34 billion changed hands. Decliners outnumbered advancers, 106 to 71, while 31 issues were unchanged.
"The culprit again will be jitters overseas, especially the growing uncertainties in Greece," said Astro del Castillo, managing director at First Grade Finance Inc., adding that the impasse with China may also have raised concerns of a “trade war.”
In Greece, President Karolos Papoulias will continue discussions on forming a coalition government, fuelling fears the beleaguered nation could miss a debt payment and exit the European Union.
Overnight, the Dow Jones industrial average fell 125.25 points, or 0.98 percent, to close at 12,695.35.
"The number of 'what ifs' has increased after the election in Greece failed to yield a clear government configuration. Until the premises of these questions are answered to the satisfaction of the collective minds of the market, we can expect negative volatility to be a staple in short term trades," said Jun Calaycay of Accord Capital Equities Corp.
Del Castillo said the correction is part of the market’s consolidation after surging to a fresh all-time high of 5,300.41 early this month, marking the 19th time that the index has rewritten record levels this year.
"Given the value turnover, there's room for further decline, but now that we're on the slump for a few days already, we may see some bargain hunting tomorrow or on Thursday," he added.
Actively traded stocks were Philippine Long Distance Telephone Co., DMCI Holdings Inc., Security Bank Corp., GT Capital Holdings Inc., and Aboitiz Power Corp.
Top gainers were Metro Pacific Tollways Corp., Federal Resources Investment Group Inc. and ATN Holdings Inc. The day's biggest losers were Vivant Corp., Rockwell Land Corp. and Megaworld Corp. warrants.
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